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MND NewsWire features plain and simple interpretations of industry related data and events written in a manner that maintains the interest of random readers while still catering to the perspective of a housing market professional.

MetLife, Inc. has agreed to pay $3.2
million to the Federal Reserve as a monetary sanction for failing to adequately
oversee operations of its subsidiary mortgage loan servicing unit's foreclosure
processing. The Fed charged these
oversight deficiencies represented unsafe and unsound practices and ordered
corrective measures in a formal enforcement action in April 2011.

In a press release from the Board of
Governors the Fed said that the monetary sanctions take into account the
maximum statutory limits for unsafe and unsound practices, the comparative
severity of MetLife's misconduct and size of its foreclosure activities and
were similar to those levied in sanctions against five other servicing
organizations. The earlier actions, popularly
known at the $25 billion servicer settlement, required those five organizations
to provide payments and designated monetary assistance and remediation to
mortgage borrowers. The Board said the
monetary sanctions against MetLife "contemplate the possibility of a similar
settlement under which MetLife agrees to provide borrower assistance or
remediation."

Specifically, if by June 30, 2013
MetLife enters into a settlement with the attorneys general and Justice Department
similar to the $25 billion settlement it will have two years to expend the
portion of that settlement designated for
borrower assistance or remediation after which the residual must be paid to the
Federal Reserve. If no settlement is
reached with the attorneys general then MetLife will likewise be required to
pay to the Fed any residuals designated for borrower assistance or remediation
under the sanctions announced today. Any
money paid by MetLife to the Board will be remitted to the U.S. Treasury.

The Federal Reserve said it has moved
against MetLife at this time because of the company's publicly announced decision
to sell its subsidiary deposit-taking operations which, if approved by
regulators, would mean the company would no longer be a bank holding company.

It appears that seven companies remain against whom the Board has not taken
action. The press release said the Board
"continues to believe that monetary sanctions in the remaining cases are
appropriate and plans to announce monetary penalties against those organizations."

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